Solv Protocol Faces Continuous Accusations Prior to TGE, Including False Pledge, Duplicate TVL Calculation, and Asset Misappropriation.
Co-founder Ryan Chow rebuts each accusation one by one, pointing out that the accusations are clearly erroneous and contradictory, and emphasizing that all SolvBTC is pegged 1:1 to both the mainnet BTC and wrapped BTC.
(Prior Summary: AILayer and Solv Protocol Announce Strategic Partnership to Expand Bitcoin DeFi Applications)
(Background Supplement: Passive Income with Bitcoin: How to Participate in Solv Protocol’s Full-Chain Revenue Agreement? A Comprehensive Explanation of the Ecological Pathway)
Solv Protocol, a Bitcoin yield protocol backed by Binance, has faced doubts and attacks from parts of the community just before its Token Generation Event (TGE). The first accusation came from a netizen named Mudita, who claimed to have missed out on the opportunity to own 1800 BTC. The community interpreted this as an accusation that Solv Protocol rug pulled this large holder’s 1800 BTC. However, it later transformed into an allegation that Solv Protocol fabricated false Total Value Locked (TVL), implying that the BTC pledged in Solv Protocol could be repeatedly counted multiple times. The attack claimed that the nearly 25,000 BTC pledged in Solv Protocol is false.
“It has been seven years since I bought my first BTC, and it seems like I’m about to embark on my first endeavor to protect my rights in the cryptocurrency industry. Do you have any advice on how to do it? If your suggestions are successfully adopted, I will give away one Bitcoin.” – Mudita (@Clarissexx0805) January 2, 2025
Founder: Accusations Based on Errors and Contradictions
In response to the recent string of attacks, Ryan Chow, co-founder of Solv, published a lengthy article today. He stated that after enduring a whole day of baseless attacks, such as “1,800 RUG” and “private agreements,” Solv is once again facing even more absurd accusations. These accusations all revolve around the core issue of asset security, but they are based on errors and contradictions, attempting to confuse the public and mislead them. In response, he emphasized that Solv will provide a positive response and debunk these false accusations with facts.
Accusation 1: Misappropriation of Underlying BTC Assets of SolvBTC.BBN
Regarding the public accusation made by Hans, co-founder of Nubit, that Solv misappropriated the underlying BTC assets of SolvBTC.BBN and attempted to provide evidence by referencing the mempool link, Ryan stated that the “evidence” provided by Hans itself is clearly erroneous.
In fact, the mempool link screenshot provided by Hans corresponds to Solv’s other revenue asset, SolvBTC.CORE, not SolvBTC.BBN, which is directly proven in the screenshot he provided (as shown in the picture below).
Ryan explained that participating in SolvBTC.CORE requires BTC to be re-pledged to a new script address every half month. For example, a pledge was made on December 19th and redeemed and re-pledged on January 2nd. This is a normal asset management practice. Additionally, after each operation is completed, Solv updates the address to Defillama, transparently and publicly managing the assets.
Ryan emphasized that the on-chain information can fully prove the daily operations of Solv’s revenue assets.
Accusation 2: Decline in SolvBTC.BBN’s TVL and Misappropriation of User Assets
Hans also claimed that the decline in TVL of SolvBTC.BBN during the Babylon Cap3 period implies that Solv misappropriated user assets. In response, Ryan stated that the actual situation is that SolvBTC.BBN officially started the redemption process on that date, which caused a change in TVL. This change precisely reflects the liquidity and flexibility provided by SolvBTC.BBN to users and does not involve any form of asset misappropriation.
Accusation 3: “Triple-Counting” BTC
Regarding the speculation in the market about the existence of “triple-counting” of BTC in Solv, which accuses Solv of repeatedly counting the same BTC assets in TVL three times, Ryan stated that this is impossible for Solv’s TVL. In Solv’s calculations, 1 BTC always equals 1 BTC. He further explained:
As an asset issuer, Solv can only be included in on-chain TVL if it is a decentralized application (dapp) according to Defillama’s classification. Therefore, you may not directly see Solv’s TVL on chains like Base because our SolvBTC and LSTs assets are deployed in dapps like Aerodrome.
Although SolvBTC holders have indeed contributed a significant amount of TVL to multiple dapps, this does not mean that there is duplicate counting in Solv’s TVL.
Ryan emphasized that Solv’s TVL only includes the underlying native BTC and the wrapped BTC that supports SolvBTC and SolvBTC.LST.
In conclusion, Ryan stated that as a project that has been deeply rooted for four years, Solv has been subjected to a series of carefully planned baseless attacks during this sensitive period before the TGE. In response, Solv has provided all the facts and evidence for the market and the public to judge for themselves.
Response to the False Pledge of 1800 BTC
Regarding the accusation of false pledge of 1800 BTC made by Mudita, Solv’s Head of Marketing, Ethean, responded by stating that all underlying assets of SolvBTC are fully pegged 1:1 to wrapped BTC and mainnet BTC.
In this incident, the protagonist, “1800 BTC Miss,” used MBTC to pledge and mint SolvBTC. Community members have already found her address, and everyone can see it.
Furthermore, she summarized the recent accusations as follows:
– Fabricating a non-existent RUG event
– Confusing the operation records of two different LST products
– Interpreting regular pledge redemption operations as fund misappropriation
– Interpreting the decline in TVL caused by open redemption as a conspiracy theory
The fact is that Solv did not make a false pledge. All underlying assets of SolvBTC are pegged 1:1 to wrapped BTC and mainnet BTC.
In this incident, the protagonist, “1800 BTC Miss,” used MBTC to pledge and mint SolvBTC. Community members have found her address, and everyone can see it: [address link]
— Ethean (@Ethean_yu) January 4, 2025
